Which One of the Following Announcements Is Most Apt to Cause

question 31

Multiple Choice

Which one of the following announcements is most apt to cause the price of a firm's stock to increase?

• A)The firm met its quarterly earnings forecast.
• B)An unpopular CEO unexpectedly announced he is resigning effective immediately.
• C)A firm officially confirmed the rumors that it is merging with a competitor.
• D)The firm just lowered its projected earnings per share for next year.
• E)Analysts are expected to lower the firm's credit rating on its debt.

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Definitions:

Adducts

The movement of a limb or other part toward the midline of the body or toward another part.

Swan-neck Deformity

A condition characterized by hyperextension of the proximal interphalangeal joint and flexion of the distal interphalangeal joint of the fingers, often associated with rheumatoid arthritis.

Ulnar Deviation

A hand condition where the fingers bend towards the ulna bone and the outer side of the forearm, often associated with rheumatoid arthritis.

Rheumatoid Arthritis

A chronic autoimmune condition causing inflammation, pain, and deformity in the joints.